Accounting income smoothing, hedging and corporate governance

Originality/value: This research contributes to the literature as it investigates the effect of the governance quality on the relationship between accounting income smoothing and hedging with derivatives. Furthermore, the intensity of accounting income smoothing is measured by the standard deviation...

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Bibliographic Details
Published in:Global business and management research 2012-04, Vol.4 (2), p.149
Main Author: Attia, Mouna Ben Rejeb
Format: Article
Language:English
Subjects:
Accounting
Accounting procedures
Cash flow
Corporate governance
Derivatives (Financial instruments)
Earnings management
Effects
Gas transmission industry
Hedging
Hypotheses
Income statements
Quality standards
Real income
Risk management
Securities markets
Special purpose entities
Standard deviation
Studies
Volatility
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Summary:Originality/value: This research contributes to the literature as it investigates the effect of the governance quality on the relationship between accounting income smoothing and hedging with derivatives. Furthermore, the intensity of accounting income smoothing is measured by the standard deviation of earnings before extraordinary items and discretionary accruals divided by the standard deviation of net income. This ratio takes into account the overall impact of all accounting choices made by managers on the earnings variation and the two income smoothing dimensions.
ISSN:1947-5667
1947-5667